New York, March 22, 2002 — Moody’s Investor’s Service changed the rating outlook for Green Mountain Power Corporation (Sr. Secured at Baa2) to positive from stable.
The change in rating outlook to positive reflects the solid financial performance demonstrated by GMP during 2001, reflecting the benefits of the shift to more supportive regulatory treatment of certain power supply costs and efficient supply planning in a more volatile market, among other factors.
Moody’s also notes that Vermont Yankee Nuclear Power Corporation has an agreement to sell its 531 megawatt nuclear power plant to Entergy Corporation. Under the sale agreement, Entergy would sell power back to the current consortium of utility owners through 2012. GMP owns a 19% equity interest in Vermont Yankee and is entitled to a pro-rata share of the output from the plant equal to its equity ownership.
Therefore, the change in outlook also anticipates the potential improvement in GMP’s business and financial risk profiles that would follow a successful sale of the Vermont Yankee nuclear plant.
A demonstrated ability to sustain its improved level of financial performance, continued efficient management of power supply costs, and a balanced redeployment of net proceeds received from the sale of the Vermont Yankee nuclear plant would enhance GMP’s chances for a rating upgrade.
Green Mountain Power Corporation is an investor-owned electric utility whose headquarters are in Colchester, Vermont.